Nifty 9,360 /Sensex 30,301 / Bank Nifty 22,536
14 Advances / 37 Declines/ 0 Unchanged
Indian benchmarks pare all gains to end lower ahead of May series F&O expiry
Indian benchmark indices ended the session on a negative note, dragged by fall in midcaps as well as escalating cross border tensions. Pakistani fighter jets flew near the Siachen Glacier today, according to a media report, but Indian Air Force sources said there was no violation of India's air space. Also, Pakistan's Air Force chief warned that his forces will respond to any aggression by the enemy in a manner that their future generations will also remember it. The optimism in domestic markets petered out completely by the end of trade and the benchmarks even drifted in to the negative territory as investors turned cautious ahead of the F&O expiry of May series due tomorrow. Market participants also awaited the minutes of US Federal Reserve's May policy meeting due later in the day for clues about its next interest rate hike.
Sentiments remained dismal on the report that weak investment activity, as reflected in the slow output growth in capital goods and infrastructure, is likely to depress Indian gross value added (GVA) growth to around 6.6 per cent in the fourth quarter ended March. The report also indicated that the transition to Goods and Services Tax (GST) is also likely to create some disruption and impact the short-term sales volume across businesses. However, losses remained capped with Prime Minister Narendra Modi's statement that our aim is that India must be an engine of growth as well as an example in climate friendly development in the years to come.
On the global front, Asian markets ended mostly lower on Wednesday after the Trump administration unveiled its first budget proposal as a 'taxpayer first' plan that makes deep cuts to a number of programs while rising spending on border security and defense. Japanese shares rose notably to hit a one-week high, as weaker yen against dollar lifts mood. The dollar held firm, having rebounded from 6-1/2-month lows against its major peers thanks to a rise in U.S. Treasury yields, with investor focus now turning towards the Federal Reserve's monetary policy stance. Further, Chinese shares rose in the final minutes of trading, erasing losses spurred by Moody's cut its sovereign credit rating on China. Meanwhile, European Markets were ricocheting between positive and negative territory in early trade, as weakness in mining and autos sectors were offset by strength in oil producers. Investors remained cautious after British Prime Minister Theresa May said the UK has raised the threat level to maximum and the government was preparing to send soldiers on to streets as a second terror attack may be imminent after the Manchester pop concert bombing.
Back home, after getting a positive start, the local benchmarks showed some strength in morning trades, but the sentiments turned pessimistic in afternoon trades and index start drifting lower. Finally, the NSE's 50-share broadly followed index Nifty, suffered a moderate cut of quarter percent to settle below the crucial 9,400 support level, while Bombay Stock Exchange's Sensitive Index-Sensex- slipped around sixty-three points and closed just above the psychological 30,300 mark. On the BSE sectoral space, Capital Goods index remained the top laggard in the space and settled with over two and half percent laceration followed by the Telecom, Metal and Healthcare pockets, which went home with around two percent cuts. However, the high beta Oil & Gas along with Auto counters remained the only gainers in the space.
FII’s Activity 24-May-17
The FIIs as per Wednesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5782.50 crore against gross selling of Rs 6148.58 crore. Thus, FIIs stood as net sellers of Rs 366.08 crore in equities.
In the debt segment, the gross purchase was of Rs 2182.63 crore with gross sales of Rs 533.22 crore. Thus, FIIs stood as net buyers of Rs 1649.41 crore in debt.
Now what to expect??
Nifty Levels
Support at 9350---9325 and Resistance at 9456.
Below 9325 will see further downside panic till 9280---9245 mark else it could test its resistance level of 9416---9456 again.
Trade in a range with levels only.
Results Today
Bosch Limited
PC Jeweller Limited
Page Industries Limited
NMDC Limited
Indian Oil Corporation Limited
Container Corporation of India Limited
BEML Limited
Cipla Limited
Balkrishna Industries Limited
Ashok Leyland Limited
Britannia Industries Limited
More will update soon!!
